The US State Department has announced a new $920 million loan to Romania to help the NATO ally procure US-made Abrams tanks and ammunition.
The Foreign Military Financing (FMF) loan announced Wednesday, makes Romania the second nation to receive such a specialized loan version, US online site Breaking Defense reported. It is a new tool the State Department rolled out in September 2023, when Poland received a $2 billion loan. In July, Poland received a second $2 billion loan under the program.
FMF loans have to be spent on US-made weapons and come with interest that will have to be paid back to the US government. For the Romanian deal, Washington put up $60 million to cover fees and guarantee the loan.
“Romania is undertaking a major military modernization program, including purchases of U.S. defense equipment such as Abrams main battle tanks and co-production of ammunition,” a statement from the State Department said.
“Romania is a leader in NATO, working closely with Allies to advance Black Sea security and providing critical assistance to Ukraine, including the transfer of a Patriot strategic air defense system and training Ukrainian F-16 pilots.”
Last November, Romania announced it would purchase up to 54 M1A2 SEPv3 Abrams Main Battle Tanks, which sell for $2.5 billion_ the purchase this FMF money will go towards.
Since 2023, the State Department cleared seven Foreign Military Sales (FMS) requests for Bucharest. Aside from the tanks, Romania requested $104 million for 95 Heavy Gun Carriers Joint Light Tactical Vehicles; an F-16 modernization effort with a $105 million estimated price tag; and 16 Assault Amphibious Vehicles at an estimated cost of $120.5 million.
In 2024, Romania was cleared to buy $592 million in AIM-120 missiles, $80 million in Javelins — plus $7.2 billion in 32 F-35A Joint Strike Fighters.
